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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Investor-ex! who wrote (7271)	4/18/1998 8:05:00 AM
From: Mama Bear	Read Replies (3) \| Respond to of 18691

>>>KTEL has been flooding the airwaves with its ads for decades, hawking greatest-hits albums, Slim Whitman, Boxcar Willie, et al. Now they are suddenly thrown into the "internet" category simply because they declare intent to offer their wares via the web?<<< Perhaps it's not as insane as you think. www.ktel.com will offer over 250,000 titles from all labels - just like CDnow and N2 - not just K-tel compilations. KTEL is still around 1:1 PSR at the current price. KTEL has a successful distribution model. KTEL has a track record of being profitable, something that AMZN and CDNW do not. You may have no respect for their compilation albums, but they've been turning a profit with them. You've seen how far YHOO,AMZN, and CDNW can run, why play with KTEL when it's just starting? I mean, unless you want to play it long? Barb

To: Investor-ex! who wrote (7271)	4/18/1998 12:32:00 PM
From: Market Tracker	Read Replies (1) \| Respond to of 18691

I happen to own shares in a discount retailer (AMES) with 300 stores, over $2.3 billion in sales, an ROE of close to 30%, increasing net margins, AND a web site to sell records, Amesmusic.com. The company is quite profitable, ($35 mil. last year ended 1'98). EPS this year, (1/99) have a consensus estimate of $1.61, up from actuals of $1.46. The issue was favorably mentioned in thestreet.com two weeks ago, and yet the company is selling at 21 1/4, with a forward P/E of 13.2X 1/99 projected EPS. AMES has a miniscule price-to-sales ratio of 0.22, and with insiders holding only 0.2% of the shares, could even be considered an acquisition candidate. For the life of me, I can't figure out why this one isn't getting any better notice from the marketplace. Perhaps the market is too busy with the high flyers, and the daily returns of +/- 10%. It indicates to me the effect of the "herd instinct", overlooking sound value plays, to bid up already overly-inflated prices of potential pie-in-the-sky dreams. Oh well, just remember the higher they fly, the further, and faster), they fall. Hey Stockmarket! - That's AMESMUSIC -- DOT COM The above is not a recommendation to either buy or sell the shares, but only a glaring example of how some companies seem to get ignored and passed by with the running of the bull herd. Astonishing. MT